MIT DCI Releases “Public Blockchains and Regulated Financial Institutions: Key Challenges, Layered Solutions, and a Path Forward”

In this whitepaper, we explore the challenges that financial institutions face when issuing assets on public blockchains. The infrastructure that traditional finance runs on today is fundamentally different from public blockchains, and this new environment comes with new risks and challenges. We explore some of these challenges in detail, and where possible look to propose how they can be addressed. In addition, we discuss where it would be most effective to address given challenges, whether by financial institutions, protocol developers, or the regulatory environment. This work was performed in collaboration with Kinexys by J.P. Morgan.